Bitcoin ETF Earns More for BlackRock Than Its Leading S&P 500 Product

BlackRock’s Bitcoin ETF Now Outearning Its Iconic S&P 500 Fund Despite Smaller Asset Pool

BlackRock’s iShares Bitcoin Trust (IBIT) has surpassed one of the firm’s most prominent ETFs—the iShares Core S&P 500 ETF (IVV)—in revenue generation, thanks to its higher fee structure, even though it holds significantly less in assets under management.

Bloomberg data reveals that IBIT has accumulated $52 billion in AUM, far below IVV’s massive $624 billion. However, IBIT charges a 0.25% management fee, which brings in about $187.2 million in annual revenue for BlackRock.

Meanwhile, IVV, a staple in both retail and institutional investment portfolios, charges just 0.03%. Despite managing nearly nine times more assets than IBIT, IVV’s annual revenue stands slightly lower at around $187.1 million.

IBIT launched in January 2024 following the U.S. regulatory approval of spot bitcoin ETFs. Since then, it has attracted consistent inflows nearly every month, amassing $52 billion in assets and becoming the largest spot bitcoin ETF on the market by a significant margin.

The rapid rise of IBIT highlights investors’ increasing demand for regulated bitcoin investment products, especially those offered by established financial giants like BlackRock. Many investors are keen to gain bitcoin exposure without the complexities and security risks associated with directly holding the cryptocurrency.

Although IBIT’s fees are higher than those of traditional ETFs, they reflect the extra complexity, custody expenses, and regulatory requirements needed to manage a digital asset like bitcoin.